Slide 1: Earnings Call 9M Results 2023
Earnings Call 9M Results 2023 – 23 November 2023
Slide 2: Agenda for today
Agenda for 01 Highlights 9M 2023 today 02 Financial figures 9M 2023 03 Outlook 2023 04 Q&A session Earnings Call 9M 2023 - 23 November 2023 2
Slide 3: Highlights 9M 2023
Highlights 9M 2023
Slide 4: NFON 2025+ Strategy for continuous and sustainably profitable growth
NFON 2025 + Strategy for continous and OUR OBJECTIVE: sustainably Sustainably profitable corporate development profitable growth Innovative product Best-in-class Strategic partnerships development channel and alliances T H E F O U N D AT I O N : Operational excellence Earnings Call 9M 2023 - 23 Nove
Slide 5: Operational excellence
Operational excellence 1 § Andreas Wesselmann will join NFON as CTO with effect from 1 January 2024. Organisation and employees: § New C-level team is currently in the process of adjusting the organisation and workflows. § Preparing integration of DTS moving forward to be able to fully exploit syner
Slide 6: Financial figures 9M 2023
Financial figures 9M 2023
Slide 7: 9M 2023 results at a glance
9M 2023 results at a glance Recurring revenue Recurring revenue growth of 5.1% compared with 9M 2022 growth Recurring revenue Increased high share of recurring revenue of 93.6% share Adjusted Significantly improved adjusted EBITDA of EUR 6.0 million EBITDA Earnings Call 9M 2023 - 23 November 2023 7
Slide 8: Continuously growing share of recurring revenue
Continuously growing share of recurring revenue Development of total recurring vs. non-recurring revenue in EUR million 5.1% 80.8 COMMENTS 80.0 75.9 210.0 7.2 § Recurring revenue grew by 5.1% 67.6 7.9 compared with 9M 2022 70.0 73.6 61.7 190.0 60.4 - acquisition of new customers 8.2 68.0 60.0 3.9 17
Slide 9: Reliable high gross margin again with increasingly positive development
Reliable high gross margin again with increasingly positive development Development of COGS (adj.)1 in EUR million and gross margin2 COMMENTS § Improved gross margin compared with the same period last year due to successfully growing share of high-margin sales 14.5 14.4 § Cost of materials is largel
Slide 10: Reduced personnel expenses in line with strategic focus
Reduced personnel expenses in line with strategic focus Adjusted personnel expenses in EUR million COMMENTS 36.4 § Average number2 of employees decreased from Ø 506 to Ø 444 (-14.0%) 31.2 § Personnel expenses as reported amount to 27.3 27.9 EUR 26.3 million (9M 2022: EUR 28.7 25.3 million) § Adjustm
Slide 11: EBITDA
EBITDA Detailed reconciliation of one-off items Reconciliation from EBITDA 9M 2023 9M 2022 to adjusted EBITDA1 § Measures to increase profitability EUR million taking effect § Significant reduction in marketing EBITDA 4.7 -4.7 and headcount expenses Stock options 0.0 0.5 Focus on core markets 0.1 0.
Slide 12: Outlook 2023
Outlook 2023
Slide 13: Raised guidance for continuous sustainably profitable growth
Raised guidance for continuous sustainably profitable growth 2021 2020 2023 2022 Recurring revenue We expect recurring revenue growth in the mid to upper single-digit percentage range growth Recurring revenue We expect a resulting recurring revenue ratio of >88% share Raised guidance: Adjusted We ex
Slide 14: Road to 2025+
Road to 2025 + H1 2024 Operational excellence IT target picture Establish optimised Establishing a state-of-the-art operating model environment for data-driven decision-making and first-class, reliable customer service Business case Reduction of technological debt and utilisation of H2 2024 technolo
Slide 15: Q&A session
Q&A session
Slide 16: Appendix 9M 2023
Appendix 9M 2023
Slide 17: Seat growth in line with strategic focus
Seat growth in line with strategic focus Development of number of seats (‘000) and ARPU 3.7% COMMENTS § Increase in total number of seats by 3.7% 634 646 623 § ARPU development: 9M 2023 stable at 587 year-end level. Slight decline versus 9M 525 2022 § Continued low gross churn rate of ~0.6% per mont
Slide 18: Decrease in marketing expenses as planned
Decrease in marketing expenses as planned Marketing expenses in EUR million COMMENTS § Marketing expenses decreased by 50.8% yoy § Focused and efficient marketing where we see market potential. Channel marketing 9.8 moves to the fore. 8.5 6.7 6.7 3.3 12.9 11.1 9.9 10.5 5.3 2020 2021 9M 2022 2022 9M
Slide 19: Selling cost slightly higher compared with 9M 2022
Selling cost slightly higher compared with 9M 2022 Selling expenses in EUR million COMMENTS § Selling expenses mainly include sales commissions to dealers and distributors (excluding wholesale partners) 11.1 - Dealers and distributors only receive a 9.9 percentage share of revenue per seat 8.7 8.0 8
Slide 20: Share at a glance
Share at a Shareholder structure* in %, as of 22 November 2023 glance Others ISIN DE000A0N4N52 Segment Prime Standard/ 17.6 Telecommunication Shares 16.6 million (29 March 2021) 32.1 Designated Baader Bank sponsors ODDO Seydler 3.4 First day of trading 11 May 2018 Coverage Berenberg Bank, 6.0 Baader
Slide 21: C-level team
C-level team Patrik Heider Gernot Hofstetter Markus Krammer Merano Mettbach Heinke Bock Deniz Beskök CEO / CFO CCO CPO CSO (Germany) CPCO CTO (interim) § At NFON since 2023 § At NFON since 2018 § At NFON since 2015 § At NFON since 1 § At NFON since 2018 § At NFON since 2007 September 2023 § ~20 year
Slide 22: Financial calendar
Financial calendar 07/03 • Preliminary group financial results FY 2023 25/04 • Group annual report FY 2023 23/05 20 • Financial results 3M/Q1 2024 28/06 • Annual General Meeting 2024 24 22/08 • Group half-year report 2024 21/11 • Financial results 9M/Q3 2024 Earnings Call 9M 2023 - 23 November 2023
Slide 23: Contact
Contact BLOG https://www.nfon.com/blog/de/ FRIEDERIKE THYSSEN Investor Relations & ESG https://facebook.com/NFONcom NFON AG TELEPHONE NFON AG Machtlfinger Straße 7 Machtlfinger Strasse 7 Phone: +49 (0) 89 453 00 449 81379 Munich, Germany ir-info@nfon.com 81379 Munich, Germany https://twitter.com/NFO
Slide 24: Disclaimer
Disclaimer This publication contains forward-looking statements regarding NFON AG (“NFON”) or the NFON Group and its subsidiaries, including assessments, estimates and forecasts regarding the financial position, business strategy, plans and objectives of management and future operations of NFON and
Slide 25: Thank you
Thank you 25